https://www.taxtmi.com/caselaws?id=457142 When a final product becomes absolutely exempt under a notification issued under Section 5A of the Central Excise Act, 1944, the manufacturer is required under Rule 11(3)(ii) of the Cenvat Credit Rules, 2004 to pay only the amount equivalent to the Cenvat credit attributable to inputs lying in stock. The statutory scheme provided for recovery of that credit amount alone and did not authorise penalty in such circumstances. Accordingly, invocation of Rule 25 of the Central Excise Rules, 2002 and Section 11AC of the Central Excise Act, 1944 was not justified, and penalty was held not leviable. en-us Mon, 01 Jan 2018 00:00:00 +0530 Sat, 07 Sep 2024 08:24:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457142 When a final product becomes absolutely exempt under a notification issued under Section 5A of the Central Excise Act, 1944, the manufacturer is required under Rule 11(3)(ii) of the Cenvat Credit Rules, 2004 to pay only the amount equivalent to the Cenvat credit attributable to inputs lying in stock. The statutory scheme provided for recovery of that credit amount alone and did not authorise penalty in such circumstances. Accordingly, invocation of Rule 25 of the Central Excise Rules, 2002 and Section 11AC of the Central Excise Act, 1944 was not justified, and penalty was held not leviable. Case-Laws Central Excise Mon, 01 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457142